Housing market

[get it in ya]

As far as housing market who knows. I have friends that have been waiting for a housing crash for 5 years, only to watch prices climb. Timing any market is a bad idea in my opinion. I don’t think we will ever see a housing crash like we did in 08 in our lifetime again, where banks failed, or maybe it will be worse, who knows. Its all just speculating. Most of the time I think your better off buying in any market and in time prices always go up with real estate, as long as you don’t buy garbage

 

[Matsuo Munefusa]

As far as housing market who knows. I have friends that have been waiting for a housing crash for 5 years, only to watch prices climb. Timing any market is a bad idea in my opinion. I don’t think we will ever see a housing crash like we did in 08 in our lifetime again, where banks failed, or maybe it will be worse, who knows. Its all just speculating. Most of the time I think your better off buying in any market and in time prices always go up with real estate, as long as you don’t buy garbage

Most solid advice so far in thread imo.

 

[BALDNAZI]

Dude really? We're censoring the truth?? The board has rules regarding certain subjects and when those subjects get talked about they get deleted! You've certainly been here long enough to know that but instead you attempt to start a rumor/conspiracy theory that PM censors the truth when in reality it's a rule violation. I'm sure there are plenty of forums out there where you can discuss the things you want to discuss. Remember, these are Big A's rules and he put them in place for a reason!

I know you a long time, you took that very seriously. No need for that. I know the rules here, I was merely stating what inevitably happens to these threads. How much longer til this one gets closed Bio? You wouldn’t do it because of the info presented correct? But because of BigA’s rules right? Just looking for clarity because knowing BigA as long as anybody on here, I’m pretty sure he agrees with a lot that’s discussed here. But again rules are rules and I get it.

I know this, certain moderators have certain views that may differ with many members here. I don’t want that to cloud their judgment. Free speech for everyone or free speech for no one. That’s just how I see it. This being a private board, the owner makes the rules, I just want it applied equally.

My greater point is that the internet is being censored, big tech will not allow certain things. People are being canceled everywhere, losing their jobs, livelihood and stature. It’s nice to have a place to speak freely such as PM. But whatever, I don’t post much anyway. I wish nothing but the best for everyone

 

[FrancisK]

Not entirely true. I've ran/owned two (I'm approaching 40). If you find the right opportunity, you can make a very nice living. Never had an investor and I grew up very poor. Of the few brick and mortar businesses left that can make money, a food business is certainly one.

It's 7 days a week work and it never stops coming at you but if your sensible and a hard worker, you can certainly make a nice living. 90% of restauranteurs fail bc they live above their means and are poor money managers and can't manage people or business expenses. Plain and simple.

Manage your food cost, find a nice lease or better yet, buy the space (easier said then done these days). Make it a one or two man operation, counter-type service in a blue collar, working man's area. A food truck as you mentioned also viable if the market isn't already saturated. You just have to be smart about it and most don't have a f ING clue.

I'm a single dad to a 7 year old and don't want to miss out on anything w my little girl, otherwise I wouldn't hesitate to own a small restaurant again. As I said, it isn't glamorous, and it's full time, 7 days a week. But, 80-125k net after operating expenses is fairly easy if you're smart about it. It's just most people don't have the business sense or capabilities to understand what and where.

It's not a terrible idea at all for those w common sensibility and who can cook there asses off... great food, good portions and served at a fair price in working class area can and will clear some nice cash.

Yea I agree, it’s buying yourself a good job and marrying it.

 

[maldorf]

Not entirely true. I've ran/owned two (I'm approaching 40). If you find the right opportunity, you can make a very nice living. Never had an investor and I grew up very poor. Of the few brick and mortar businesses left that can make money, a food business is certainly one.

It's 7 days a week work and it never stops coming at you but if your sensible and a hard worker, you can certainly make a nice living. 90% of restauranteurs fail bc they live above their means and are poor money managers and can't manage people or business expenses. Plain and simple.

Manage your food cost, find a nice lease or better yet, buy the space (easier said then done these days). Make it a one or two man operation, counter-type service in a blue collar, working man's area. A food truck as you mentioned also viable if the market isn't already saturated. You just have to be smart about it and most don't have a f ING clue.

I'm a single dad to a 7 year old and don't want to miss out on anything w my little girl, otherwise I wouldn't hesitate to own a small restaurant again. As I said, it isn't glamorous, and it's full time, 7 days a week. But, 80-125k net after operating expenses is fairly easy if you're smart about it. It's just most people don't have the business sense or capabilities to understand what and where.

It's not a terrible idea at all for those w common sensibility and who can cook there asses off... great food, good portions and served at a fair price in working class area can and will clear some nice cash.

What I always wondered is, don't you need to have some experience with the food business in order to start up and succeed? Maybe hire a manager that already knows how to run a restaurant?

Our neighbors own 2 very successful Mexican restaurants. I don't know them, but from his accent I can tell he is probably an immigrant. So he came here and became an American success story. They just bought the house 2 down from us for $800,000. Looks like they just spent a LOT of money building some huge project in the backyard too. 3 huge cement trucks emptied their loads there.

So the food business can certainly pay off huge! His hard work payed off. Gotta admit I'm a bit jealous.

 

[maldorf]

As far as housing market who knows. I have friends that have been waiting for a housing crash for 5 years, only to watch prices climb. Timing any market is a bad idea in my opinion. I don’t think we will ever see a housing crash like we did in 08 in our lifetime again, where banks failed, or maybe it will be worse, who knows. Its all just speculating. Most of the time I think your better off buying in any market and in time prices always go up with real estate, as long as you don’t buy garbage

One thing for sure, building a new home now is a very foolish thing. I can say that after seriously considering it.

Buying an existing home isn't nearly as risky.

 

[ripriot]

No, it’s the poor that are entitled..

They are both. Entitlement is a form of greed dating back to before Christ.

 

[ripriot]

@Bio why did my post get deleted. It had nothing political in it

 

[get it in ya]

One thing for sure, building a new home now is a very foolish thing. I can say that after seriously considering it.

Buying an existing home isn't nearly as risky.

I agree building a new home now is nuts, the prices for material is crazy, I would never consider it. Maybe if you got the land free some how lol. Just paid for my stock to side my house, went up like 3-4k from last year. Ridiculous!!!! At this point all homes are money pits. The future is a renters nation. I find all homes to be liabilities

 

[SDRaver]

I've been looking to maximize both retirement and VA benefits in states like FL and TX. Where I would not have my military retirement taxed by those states. As well be 100% property tax exempt for being wounded. Then throw on top of that a no money down VA loan.

But damn it's like one minute you look at a home the next minute it's off the market. It's like home buying now has become the 2021 version of buying toilet paper and gas during covid in 2020.

 

[TedDansen]

It's hard to give advice on the real estate market because there isn't a real estate market. There are thousands of local markets, that may or may not have some correlations to other markets. The 2008 crash? Prices in Central Texas didn't flinch (they flinched a little, but not nearly as much as other places).

Is the investment going to be a buy and hold rental, a flip, an airbnb? (I don't consider your personal home an investment. Investments bring in usable income periodically) If you're buying in Miami, I think the numbers for rentals don't work, but they're better in Orlando. An airbnb would probably be better if you're willing to put in that work. I'm not a big fan of flips in general for non-real estate professionals.

So, a lot of questions and "it depends" type answers. There are a couple pieces of advice I could give that generally work. The saying "don't wait to buy real estate, buy real estate then wait" generally holds. The national average for real estate appreciation is 6%, and the other benefits of owning property usually make it outpace other investments. So instead of trying to time the market (gambling, basically), try to find something that makes sense when you buy it, and the numbers tend to get even better with time. As for what makes sense to buy, lower priced houses usually are better (no shit?) in terms of making money on rentals etc. There is a line right around 250k (again, depending on the market) where anything above the renter has the advantage, and anything below you can start to see profits. So if you live in an area where the home prices are 500k+, the best move would be to take that 500k, buy 2-3 houses in a market that makes sense and rent them out, and then rent a house to live in.

 

[maldorf]

I agree building a new home now is nuts, the prices for material is crazy, I would never consider it. Maybe if you got the land free some how lol. Just paid for my stock to side my house, went up like 3-4k from last year. Ridiculous!!!! At this point all homes are money pits. The future is a renters nation. I find all homes to be liabilities

Prices on a lot of things are nuts now. Computer graphics cards are a good example. Cards that are supposed to cost $1400 are being sold by manufacturers now for $2200. You can't find them. Stores are having raffles where thousands enter just to win the right to buy the cards for $2200. Then some are turning around and selling the cards on Amazon for over $3000. They were up to $4000 for awhile. Chip shortages have raised the sale price of new cars as well because they can't get enough chips to build new. A guy I know that works in a Subaru plant has 2 weeks off now because they shut down.

Buddy of mine sold an Omega "Moon" watch that was many years old. I think he paid about $6000 for it new. He sold it for $12,000. Some now going for $20,000. It was a rare model. Supply and demand.

 

[get it in ya]

Prices on a lot of things are nuts now. Computer graphics cards are a good example. Cards that are supposed to cost $1400 are being sold by manufacturers now for $2200. You can't find them. Stores are having raffles where thousands enter just to win the right to buy the cards for $2200. Then some are turning around and selling the cards on Amazon for over $3000. They were up to $4000 for awhile. Chip shortages have raised the sale price of new cars as well because they can't get enough chips to build new. A guy I know that works in a Subaru plant has 2 weeks off now because they shut down.

Buddy of mine sold an Omega "Moon" watch that was many years old. I think he paid about $6000 for it new. He sold it for $12,000. Some now going for $20,000. It was a rare model. Supply and demand.

Cash is trash

 

[maldorf]

Cash is trash

That too! Like Monopoly money.

 

[NEMSZ]

Cash is trash

I see this being said a lot, but I honestly think it depends on the amount unless the US Dollar becomes like a Venezuelan Bolivar or something where any amount is basically worthless..

I get that even if you have $100 million in the bank, over time, even a long time, it’s bound to depreciate...

But I imagine it’s real nice to be like one of these Grant Cardone or Robert Kiyosaki real estate guys who make like $100 million a year from passive income (real estate assets) AND have a shit ton of money in the bank..

I would still love for someone to explain the Kiyosaki train of thought that money/cash IS debt... I’ve read his book and watched many of his videos but I can’t seem to understand what he means by that in simplest terms...

 

[get it in ya]

I see this being said a lot, but I honestly think it depends on the amount unless the US Dollar becomes like a Venezuelan Bolivar or something where any amount is basically worthless..

I get that even if you have $100 million in the bank, over time, even a long time, it’s bound to depreciate...

But I imagine it’s real nice to be like one of these Grant Cardone or Robert Kiyosaki real estate guys who make like $100 million a year from passive income (real estate assets) AND have a shit ton of money in the bank..

I would still love for someone to explain the Kiyosaki train of thought that money/cash IS debt... I’ve read his book and watched many of his videos but I can’t seem to understand what he means by that in simplest terms...

both guys agree cash flow is king and both do not like sitting on cash, they buy real assets that create cash flow and appreciate over time like you mentioned. of course they are not talking about thousands, they are talking millions since they own a lot of real estate. i am a nobody but i agree with both of them cash is no good, especially with 40% of money printed in the last year, of course i mean invest that money instead of sitting under your mattress or in the bank. kiyosaki is a great teacher but take what you need and leave the rest lol, he gets a little crazy with the cash is debt thing

 

[Matsuo Munefusa]

both guys agree cash flow is king and both do not like sitting on cash, they buy real assets that create cash flow and appreciate over time like you mentioned. of course they are not talking about thousands, they are talking millions since they own a lot of real estate. i am a nobody but i agree with both of them cash is no good, especially with 40% of money printed in the last year, of course i mean invest that money instead of sitting under your mattress or in the bank. kiyosaki is a great teacher but take what you need and leave the rest lol, he gets a little crazy with the cash is debt thing

I totally agree with this thought but there has to be a middle ground. My last project (building my house) cost total 100k of my liquidity. That was from 3 years of working and saving (saving around 30-40k a year). My next project is going to take an equal amount of money (build a rental next door) because I’m not willing to borrow against my home which I own outright (what if I died and left my partner with 150k debt? Seems too risky for me). So I’ve been saving up again for building in 2022-2023ish. So I do hold cash, not huge amounts but from 50-150k for mid term goals. Not sure how brilliant it is given that I agree with what you’re saying but I’m trying to walk the middle path to achieve my goals (grind out good solid work and end up with multiple homes by the time I’m 50).

 

[get it in ya]

I totally agree with this thought but there has to be a middle ground. My last project (building my house) cost total 100k of my liquidity. That was from 3 years of working and saving (saving around 30-40k a year). My next project is going to take an equal amount of money (build a rental next door) because I’m not willing to borrow against my home which I own outright (what if I died and left my partner with 150k debt? Seems too risky for me). So I’ve been saving up again for building in 2022-2023ish. So I do hold cash, not huge amounts but from 50-150k for mid term goals. Not sure how brilliant it is given that I agree with what you’re saying but I’m trying to walk the middle path to achieve my goals (grind out good solid work and end up with multiple homes by the time I’m 50).

Your not saving your money, your storing it for investments which is smart, I like what your doing. In 2021 saving money is for losers lol. But I have to say I hate equity in home. Recently I just did refi on my home, I hate equity, just dead money. So I grabbed 200k at 3% and invested it in real estate for cash flow at 8.5%. I have so many friends there net worth is in there home, crazy to me. As far as something happening to you do a will, always a smart thing

 

[NEMSZ]

Your not saving your money, your storing it for investments which is smart, I like what your doing. In 2021 saving money is for losers lol. But I have to say I hate equity in home. Recently I just did refi on my home, I hate equity, just dead money. So I grabbed 200k at 3% and invested it in real estate for cash flow at 8.5%. I have so many friends there net worth is in there home, crazy to me. As far as something happening to you do a will, always a smart thing

How does a will protect you from debt? Curious about that...

Also, I think that’s pretty smart pulling the money out and using it for cash flow instead of just letting it sit...

 

[maldorf]

Your not saving your money, your storing it for investments which is smart, I like what your doing. In 2021 saving money is for losers lol. But I have to say I hate equity in home. Recently I just did refi on my home, I hate equity, just dead money. So I grabbed 200k at 3% and invested it in real estate for cash flow at 8.5%. I have so many friends there net worth is in there home, crazy to me. As far as something happening to you do a will, always a smart thing

Buddy of mine bought 30 acres out in the country with a small simple ranch, so most of the money is tied up in the land. The house is neat because it's underground.

His wife bought a commercial building and is running online sakes from there. She had an apartment building that she just sold to buy the new place. They are doing well. He owns his own tool and die company.